Market Report: Waiting for the USDA Report This Morning

Corn closed 3-4 cents lower Thursday. It looked like there was some position squaring going into the USDA June Supply Demand Report this morning at 11. The average trade guess for old crop carryover is 1.772 billion bushels compared to last month's estimate of 1.803 billion bushels. For new crop traders expect carryover to come in at 2.125 billion bushels, last month's estimate was 2.153 billion bushels. Export sales saw another huge number at 1.679 MMT. In addition the USDA announced that 116,300 MT of  old corn was sold to an unknown destination.

It was a fairly quiet day Thursday in beans too as beans closed about 2 cents lower. Export sales came in with another huge number at 1.234 MMT. About half was old crop and half new crop. On top of those numbers the USDA announced a daily sale of 240,000 MT of new crop beans were sold to an unknown destination. The average trade guess for old crop bean carryover are at 387 million bushels compared to last month at 400 million. New crop carryover is expected to drop to 289 million bushels. Given the export demand lately it seems like the USDA will have to drop carryovers more than the trade expects.